The relationship between the euro and the U.S. dollar is a closely watched one because of its impact on broader markets. Over the past year, the strengthening euro helped support the broader equity markets.

Novellus lowered its next quarter earnings estimates significantly below the consensus estimate, saying that it expects bookings to continue to fall as PC shipments remain soft. The stock was down more than 10% on the news.

Microchip shares slid more than 13% after it also guided down its outlook below the consensus estimate. The company pointed to deteriorating business conditions as the main reason for the weaker than expected results.

Weakness in Novellus and Microchip shares quickly projected into the whole semiconductor sector. As a result, the semiconductor exchange-traded fund $SMH was down almost 3% for the day.